Fiscal Response to Economic Shocks: An Empirical Case Study of South Africa's Policy Framework During the COVID-19 Pandemic

Abstract

This study investigates the fiscal response mechanisms employed by South Africa in light of the economic shocks induced by the COVID-19 pandemic. Utilizing a mixed-methods approach, we analyze quantitative data on fiscal expenditures and qualitative interviews with policymakers. Our findings reveal that while the immediate fiscal interventions were substantial, long-term sustainability remains a critical concern. The nuanced interaction between rapid fiscal expansion and structural economic vulnerabilities underscores the need for a more resilient policy framework. Ultimately, this study contributes to the discourse on effective fiscal policy in crisis situations, with implications for future economic governance.